The "coupon rate" is:
A. the total amount of interest payments made on a bond as a percentage of the amount borrowed.
B. the annual amount of interest payments made on a bond as a percentage of the amount borrowed.
C. the change in the value of a bond expressed as a percentage of the amount borrowed.
D. another name for the yield on a bond, assuming the bond is sold before it matures.
Answer: B
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The term "transportation revolution" implies:
a. binding the East and West politically. b. binding the East and West economically. c. rapidly introduced technological innovations. d. All of the above are implied.
An increase in demand and a decrease in supply cause which of the following?
a. Equilibrium price change is indeterminate. b. Equilibrium quantity decreases. c. Equilibrium price falls. d. Equilibrium price rises. e. Equilibrium quantity increases.
The optimal consumption bundle of two goods is found at the point of tangency of the highest indifference curve and the budget constraint
a. True b. False Indicate whether the statement is true or false
Suppose that Jean normally orders three tacos, but on seeing that their price has gone up, decides to buy only two. Jean's decision is best explained by:
A) income and substitution effects. C) the principle of comparative advantage. B) the law of supply. D) the law of increasing opportunity costs.